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1. Stock in Blue-Sky Inc. is currently priced at $28 per share. A call option with a $35 strike and 60 days to maturity is

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1. Stock in Blue-Sky Inc. is currently priced at $28 per share. A call option with a $35 strike and 60 days to maturity is quoted at $1.22. Compare the percentage gains and losses for both options and spot positions for the stock prices of $20 and $41 in 60 days. (40 MARKS)

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